NIPCO deepens commitment to CNG as Nigeria pushes for cleaner alternatives

NIPCO Plc has emerged as a key player in the Federal Government’s push for Compressed Natural Gas (CNG) adoption, positioning itself as a major force in reshaping the country’s energy future as Nigeria accelerates its transition to cleaner energy sources.

At its 20th Annual General Meeting held in Abuja, the company’s leadership reaffirmed its dedication to deepening investments in gas infrastructure, aligning with national objectives to cut fuel costs, reduce carbon emissions, and diversify energy sources.

Paul Anekwe, chairman of NIPCO Plc described CNG as “a cleaner alternative to conventional fossil fuels,” highlighting the company’s early recognition of its potential more than 15 years ago.

“Our company sought Federal Government approval to establish the gas infrastructure that allows motorists to switch to gas. That vision aligns perfectly with President Bola Ahmed Tinubu’s renewed drive to promote gas as a transition fuel,” Anekwe said.

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The federal government’s current CNG drive under the Presidential Compressed Natural Gas Initiative (PCNGI) has gained momentum, with over 100,000 vehicles already converted to run on both gas and petrol. NIPCO’s subsidiary, NIPCO Gas Ltd, has played a pivotal role in enabling this transformation, providing infrastructure support, expanding gas dispensing stations, and advocating for the broader adoption of auto gas across Nigeria.

Suresh Kumar, managing director of NIPCO, echoed similar sentiments, emphasising that “the introduction of CNG as a fuel source aligns with the government’s energy diversification drive, which has received extensive support from consumers across the country.”

He added that NIPCO’s partnership with the federal government would be intensified in 2025 and beyond to ensure “more motorists and industrial users benefit from the economic and environmental advantages of gas utilisation.”

The PCNGI’s measures, including free CNG kits and the introduction of mobile refilling stations, have further accelerated the adoption rate, particularly among commercial transport operators seeking alternatives to expensive petrol and diesel.

Industry experts note that the push for CNG comes at a critical time. Nigeria, Africa’s largest crude oil producer, is grappling with high transportation costs following the complete removal of fuel subsidies in 2023. The price shock triggered nationwide discontent and renewed calls for sustainable, locally-sourced energy solutions. Natural gas, of which Nigeria holds the ninth-largest reserves globally, presents a strategic advantage.

For NIPCO, the pivot to gas is more than just a reaction to government policy—it is a reflection of its long-term strategy. “We believe that the administration’s reforms will unlock numerous benefits to Nigeria’s economy and open a new vista for motorists,” the Chairman said.

Read also: NIPCO supports Tinubu’s petroleum industry’s reforms

Beyond auto-gas, NIPCO is also expanding its investments in Liquefied Petroleum Gas (LPG), with newly constructed infrastructure to boost storage capacity and facilitate faster, more cost-effective loading operations. The company is targeting both domestic and industrial users as it looks to consolidate its leadership position in the gas sector.

As part of its broader vision, NIPCO has committed to increasing investments across all its business verticals.

“We will be leveraging the full deregulation of the downstream sector to boost our retail expansion drive across the country,” Kumar said.

He noted that the company is focused on innovation, improved operational efficiency, and internal controls as it navigates the challenges and opportunities in the evolving energy landscape.

The transition to gas also promises long-term environmental benefits. By reducing dependency on fossil fuels, Nigeria can significantly lower greenhouse gas emissions in line with its commitments to international climate accords.

Additionally, the use of CNG and LPG in homes, industries, and transport offers a path toward more affordable and sustainable energy access.

Despite global economic turbulence in 2024, which included rising geopolitical tensions and oil price volatility, NIPCO recorded a robust financial performance. The company posted a turnover of N1.46 trillion and a profit after tax of N11.5 billion, signaling resilience and strategic growth across its operations.

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A dividend of N7 per share was declared, representing a total payout of N1.31 billion to shareholders.

Looking ahead, both the chairman and managing director of NIPCO expressed optimism about the company’s trajectory.

“We are building a culture of stellar service delivery to further position us as a driver of long-term value for our shareholders,” Anekwe said.

NIPCO’s role in the CNG revolution signals a new era for cleaner, more affordable fuel solutions, one that could help transform how Nigerians power their vehicles and homes in the years to come, as Nigeria’s energy transition gathers pace.